eor - made in Germany
Employer of Record (EOR)
Are you an international company looking to hire employees in Germany without establishing your own local entity?
Our Employer of Record (EOR) service is the ideal solution for legally compliant and hassle-free employment in Germany. We hold the mandatory license from the Federal Employment Agency, ensuring that our service is fully compliant with legal requirements.
What Does an Employer of Record (EOR) do?
An Employer of Record (EOR) is an organization that helps companies expand internationally by employing and paying employees on behalf of another company. EORs assume the responsibility for all formal employment tasks, including payroll processes and compliance documentation.
Simply put, using an Employer of Record (EOR) allows companies to legally and efficiently employ employees in other countries without having to set up a local entity or risk violating local employment laws.
Our Services
Employment of employees for the Client (EOR model)
Payroll processing, statutory deductions, and payments
HR support for day-to-day employee matters.
Benefits administration and statutory insurances
Employment contracts and documentation
Onboarding and offboarding support
Compliance with German labor and employment law
Coordination with authorities (tax, social insurance, etc.)
Focus on what Matters
By letting us take care of all legal and administrative employer duties, you can focus on your core business goals. We handle the back-end compliance so you can drive forward with confidence.
By using our EOR service, you can hire employees in Germany instantly without the lengthy process of setting up a local subsidiary. This gives you the agility to seize opportunities in the German market right away.
How much does employment in Germany cost, and how much is an EOR?
Hiring in Germany involves more than just paying a gross salary. Employers are required to contribute
to statutory social insurance, health, pension, and unemployment schemes — typically adding around 24 % on top of gross pay.
Employer Cost Calculator (Germany)
Enter the employee’s monthly gross salary, select period, then press Calculate. Use Download PDF to export.
Employer cost structure in Germany
- Based on a Gross Salary = 100%
- Pension insurance (9.3 %) – statutory retirement fund
- Health insurance (8.9 %) – statutory health insurance
- Long-term care insurance (1.8 %) – nursing and care contribution
- Unemployment insurance (1.3 %) – unemployment protection
- U1 (2.5 %) – reimbursement (partial) for longtime sickness
- U2 (0.34 %) – reimbursement for maternity and parental leave
- U3 (0.15 %) – insolvency levy
Employers in Germany pay about 24 % on top of gross salary in mandatory contributions.
These contributions ensure strong social protection but make employment administration complex — worknow handles payroll, benefits, and compliance for you, so you know exactly what employment in Germany really costs.
worknow fees
- Our Employer of Record service provides full employment, payroll, and compliance coverage in Germany.
- We handle all statutory obligations — from contracts and payslips to social security, benefits, and tax filings — so you can focus on your business.
- Our pricing is tailored to your team’s setup, employment type, and scope of services.
- We provide a clear, all-inclusive monthly fee that covers everything required for compliant employment in Germany.
- The monthly service fee covers all employment administration, payroll, statutory filings, benefits coordination, and local compliance.
- Fees only apply while the employee is actively employed under worknow’s EOR arrangement.
- Payments for gross salaries and employment costs are due by the 15th of each month, with salary disbursement on the third-last German banking day.
- A deposit equal to one month’s gross salary per employee is required before onboarding and will be offset against the final payroll upon termination.
Get in touch for a transparent quote based on your specific needs.
Paid time off and holidays in Germany
worknow applies the German GVP collective agreement to ensure fair, transparent, and compliant employment conditions. The GVP tariff sets binding standards for pay and benefits, including a current minimum hourly wage of €14.85.
- Employees hired under the GVP collective agreement enjoy generous paid leave and strong employment protections.
- Annual vacation starts at 25 days and increases with length of service — many employees receive up to 30 days per year.
- Germany also observes 9 to 13 public holidays, depending on the federal state. For example, Bavaria and Baden-Württemberg have more holidays than Berlin or Hamburg.
- Sick leave is fully paid for up to six weeks per illness, with reimbursement handled through the U1 employer insurance scheme.
- In Germany, employees are absent due to sickness for an average of 20 days per year (based on a 5-day work week).Source: Bundesverband der Betriebskrankenkassen (BKK Gesundheitsreport 2024)
By applying the GVP agreement, worknow ensures fair, compliant employment conditions that meet German labor standards — and go beyond the legal minimum.
Holiday and Christmas bonuses under the GVP collective agreement (up to 18 months tenure)
Employees covered by the GVP collective agreement are entitled to both holiday pay and a Christmas bonus, even during their first 18 months of employment. For employees with up to 18 months of tenure, the current (2024/2025) GVP rates are approximately:
- Holiday bonus: 150 EUR
- Christmas bonus: 200 EUR
These payments are additional to the regular salary and apply once the employee has been continuously employed for at least six months.
Here’s what you can expect from us ✔︎
Onboarding within 1–3 days – even on weekends, if all documents are ready. Fast, practical and flexible.
Full compliance – we operate with a valid German labour leasing licence (AÜG), so your business and your employees are always on the safe side.
Direct personal support – every client and every employee gets a dedicated contact person. Available 6 days a week, 365 days a year, by email, phone or mobile.
Local presence – our team members are based in all major German cities, ready to support on the ground.
Transparent fixed pricing – clear monthly fees, no hidden charges with clear communications
Proven experience – as the largest supplier of external workforce for Uber & Uber Eats in Germany, we know how to manage complex workforce projects reliably
Why Germany is Especially Complex
Germany is an attractive market, but it also has one of the most regulated employment systems worldwide. A few key challenges include:
An EOR in Germany ensures full compliance with these regulations — reducing your legal and financial risk
Strict labor laws
Detailed rules for working hours, vacation, overtime, and termination.
Strong employee rights
Notice periods, protections against unfair dismissal, and mandatory co-determination in some cases.
Social security obligations
Employers must contribute to health insurance, pension, unemployment, and nursing care insurance — mistakes are costly.
Collective agreements
Many industries have binding wage agreements and conditions.
Employee leasing regulations (Arbeitnehmerüberlassung)
Specific licensing requirements apply when employees are assigned through third parties.
why worknow EOR services
Hiring in Germany can be complex – from strict labour leasing regulations to visa requirements and local compliance rules. Many global EOR providers work with standardised processes that look smooth online, but they often don’t reflect the unique reality of the German market. That’s where we step in.
worknow is based in Berlin, Germany, and we combine local expertise with a very personal approach. We don’t just provide documents – we make sure things actually move quickly and smoothly.
FAQs for Employer of Record Services
What is an Employer of Record (EOR)?
An Employer of Record (EOR) is a service provider that legally employs people on your behalf in another country. The EOR becomes the official local employer, while you keep full control over your team’s day-to-day work and performance.
Not all EOR providers work the same way. Some have their own legal entities in every country, which means they handle everything in-house and follow local laws directly. Others work through third-party partners or a mix of both. When choosing a provider, it’s important to make sure they’re legally set up in the countries where you want to hire.
How much does an EOR cost?
EOR services are usually priced in two ways: a fixed monthly fee per employee, or as a percentage of the employee’s salary. Fixed fees don’t change based on role or pay, while percentage-based pricing depends on the employee’s compensation level.
Since employment costs vary a lot from country to country, transparency is key. A good EOR will give you a clear cost breakdown with no hidden fees. Be cautious with percentage pricing — it can sometimes push companies to keep salaries low or rely on external contractors. A trustworthy provider will offer fair, predictable pricing that fits your hiring strategy.
What does an EOR actually do?
The main job of an EOR is to act as the legal employer for your team members abroad and handle all the compliance, payroll, and admin work that comes with it. That includes employment contracts, taxes, social contributions, and reporting obligations — all tailored to each country’s local laws.
Because employment regulations differ widely between countries, outsourcing these tasks to an EOR frees you up to focus on strategic priorities like hiring the right people and growing your business, instead of navigating complex local bureaucracy.
How is an EOR involved in payroll?
When you work with an EOR, they take full responsibility for payroll in the countries where you hire. You provide the funds, and the EOR makes sure salaries are paid correctly and on time, while also handling all tax and social security payments required by local authorities.
The big advantage? You don’t need to master every country’s payroll rules or tax system. You focus on your team; the EOR takes care of the legal and financial details.
Can I hire international employees without using an EOR?
Yes, you can — but it’s usually more complicated. You’d need to either set up your own legal entity in the target country or work with freelancers and contractors. Both options have pros and cons.
Setting up a local entity means taking on all legal, tax, and HR responsibilities yourself. This can make sense if you plan to hire a large team in that country. For just a few employees, though, using an EOR is typically faster and more cost-effective.
Freelancer arrangements can work, but there’s a risk of misclassification (treating someone like a contractor when they should legally be an employee). Many countries take this seriously, and penalties can be steep. An EOR helps you stay compliant and avoid that risk.
How do I compare different EOR providers?
When comparing EOR providers, pay attention to:
Coverage: Which countries can they hire in without relying on third parties?
Services: Do they offer payroll, benefits, onboarding, and full compliance?
Compliance: How well do they follow local laws?
Technology: Is their platform modern and easy to use?
The best providers have their own entities in each country, strong data protection practices, and clear processes for handling employee information. Don’t be afraid to ask tough questions about compliance, data handling, and how they protect your company’s intellectual property.
Services: Do they offer payroll, benefits, onboarding, and full compliance?
Compliance: How well do they follow local laws?
Technology: Is their platform modern and easy to use?
The best providers have their own entities in each country, strong data protection practices, and clear processes for handling employee information. Don’t be afraid to ask tough questions about compliance, data handling, and how they protect your company’s intellectual property.
Is hiring through an EOR legal?
Yes. In most countries, hiring through an EOR is completely legal. To get the highest level of legal certainty, work with providers that have their own legal entities in the countries where you’re hiring and know the local regulations inside out.
Before signing up, double-check that the provider is actually registered locally and can handle payroll, taxes, and benefits properly. That way, you can hire confidently without running into legal surprises.
What’s the difference between a PEO and an EOR?
An EOR can legally hire employees for you anywhere in the world. A PEO (Professional Employer Organization) can’t — they only support companies that already have a legal entity in the country where the employees are based.
In short:
If you don’t have a legal entity in the country, you’ll need an EOR.
If you do have a legal entity but want help with HR tasks like payroll and benefits, a PEO might be a good fit.
PEOs and EORs offer similar services, but only EORs take on the full legal employment responsibility.
If you do have a legal entity but want help with HR tasks like payroll and benefits, a PEO might be a good fit.
PEOs and EORs offer similar services, but only EORs take on the full legal employment responsibility.
How much support will I get as a new EOR client?
A good EOR won’t leave you on your own. They’ll walk you through every step of the process to make sure everything runs smoothly. Typically, you can expect:
A personal welcome: A dedicated contact person introduces you to the platform and process.
Clear next steps: You’ll get a tailored plan to set up your first hires quickly and correctly.
Platform walkthrough: A guided tour of the tools and features you’ll use.
Ongoing support: Expert help is always available, plus plenty of online resources.
Smooth onboarding: Step-by-step assistance to get your first employees set up without stress.
Clear next steps: You’ll get a tailored plan to set up your first hires quickly and correctly.
Platform walkthrough: A guided tour of the tools and features you’ll use.
Ongoing support: Expert help is always available, plus plenty of online resources.
Smooth onboarding: Step-by-step assistance to get your first employees set up without stress.
With worknow, you get the best of both worlds
the efficiency of a modern EOR service and the reliability of a local partner who is always there when you need support.
Hiring an EOR provider without the necessary Agentur für Arbeit authorization can expose your business to serious risks. Under German law, you could face subsidiary liability, meaning you could be held accountable for any violations of labor, tax, or social security laws committed by your provider. This could result in hefty fines and unexpected back payments.
our pricing
Transparent fees. Reliable service. Local expertise.
We believe in clear and predictable costs, which is why our pricing model is fully transparent, legally compliant, and tailored to meet the specific requirements of your business in Germany.
worknow GmbH
Schlüterstraße 37
D-10629 Berlin
+49 (0) 30 887 212 02

info@w-now.de

